Why Pay by Bank apps are the next big thing for SMEs

Explore why Pay by Bank apps are making waves in small business payments. Streamline your SME's payments with Open Banking solutions.

If you’re running a small or medium-sized business (SME), you know that seamless payment transactions are the heartbeat of your operations. You’ve probably heard about pay by bank apps and wondered if they’re a fad or the next big thing.

Here’s the scoop: pay by bank apps are more than a trend; they’re set to change the SME payments landscape. But how? Let’s dive in.

What Are Pay by Bank Apps?

At their core, pay by bank apps are mobile payment solutions that use open banking technology to facilitate direct bank transfers between customers and businesses. They offer a more direct and secure way to handle transactions, bypassing intermediaries like card processors.

How Do They Work?

When customers opt to pay through a pay by bank app, the app takes them straight to their bank’s app or online banking portal. They authenticate themselves (something they’re used to doing, usually this means scanning the face or fingerprint), confirm the payment details and authorise the payment. Funds move directly from their bank account to the merchant’s account.

Why They’re a Game-Changer for SMEs

1. Cost-Efficiency

With pay by bank apps, businesses bypass costly card networks and intermediaries. It can remove transaction fees, making it a great payment processing option for SMEs operating on low margins. Traditional card processing can eat into your revenue, particularly if you’re a small business. Open banking payments through pay by bank apps offer a welcome solution.

2. Speed

The direct nature of pay by bank app transactions means that payments settle instantly. No more waiting days for funds to clear! This quicker turnover can improve cash flow, a crucial factor for many SMEs.

3. Security

Pay by bank apps use the customer’s banking app for authentication, leveraging the bank’s security measures. Plus, because transactions are direct, it reduces the risk of data breaches.

4. Convenience

These apps provide an easy-to-use payment processing option for small businesses. They offer a simple and intuitive customer journey, and with most of the UK population now using mobile banking, it’s a comfortable and familiar process for customers.

Harnessing the Power of Pay by Bank Apps

As with all business decisions, it’s crucial to choose the right pay by bank app solution that matches your specific needs. That’s where Sway comes in.

Sway not only offers a pay by bank app option but combines it with other small business payment options, giving you the flexibility and freedom to accept payments the way your customers want.

Sway provides a perfect blend of simplicity, security, and affordability, making it a favourite among SMEs looking for innovative small business payment solutions. With the lowest fees in the market for QR code payments and the option for instant settlement, Sway helps you save on transaction costs and improve cash flow.


In a world where digital payments are the norm, pay by bank apps offer a fresh, secure, and cost-effective alternative that’s shaping the future of small business payments. It’s more than a trend; it’s a shift in how transactions are conducted, and SMEs stand to gain a lot from this evolution.

So, as an SME, it might be worth exploring pay by bank apps for your payment processes.

They offer cost-efficiency, speed, security, and convenience all bundled into one, and platforms like Sway are making this technology accessible for businesses of all sizes.

There you have it, pay by bank apps are not just the next big thing; they are THE thing for SMEs. And we’re just getting started.